Armenian Government Reviews Tax Code Revisions to Support SMEs
The Armenian government is assessing the framework of a new tax code, as announced by Finance Minister Vahe Hovhannisyan during a press conference on June 16. The government's agenda for 2021-2026 includes a gradual phase-out of tax exemptions, which are viewed as ineffective.
Minister Hovhannisyan indicated that various ideas are currently under consideration. As discussions evolve, more detailed updates will be shared. The focus is on rethinking the turnover tax and the taxation system for small and medium-sized enterprises (SMEs) to reduce administrative burdens during their establishment while encouraging growth. This approach aims to avoid imbalances between the general and preferential taxation systems, which have been identified in recent years, prompting restrictions to address these discrepancies.
Last week, tax reform discussions included non-governmental organizations within the Tax Council, which represents diverse stakeholder interests. Minister Hovhannisyan recognized that frequent changes to tax legislation create uncertainty for businesses, making Armenia's economic environment unpredictable. He proposed adopting global practices where tax reforms are aligned with budget planning to enhance the correlation between revenues and expenditures.
On November 14, Prime Minister Nikol Pashinyan stated in parliament that the government is working on new tax legislation, criticizing the current laws for not serving the country's interests and potentially undermining state objectives. He emphasized the need for collective efforts to generate legitimate revenue, particularly regarding the turnover tax.
Minister Hovhannisyan indicated that various ideas are currently under consideration. As discussions evolve, more detailed updates will be shared. The focus is on rethinking the turnover tax and the taxation system for small and medium-sized enterprises (SMEs) to reduce administrative burdens during their establishment while encouraging growth. This approach aims to avoid imbalances between the general and preferential taxation systems, which have been identified in recent years, prompting restrictions to address these discrepancies.
Last week, tax reform discussions included non-governmental organizations within the Tax Council, which represents diverse stakeholder interests. Minister Hovhannisyan recognized that frequent changes to tax legislation create uncertainty for businesses, making Armenia's economic environment unpredictable. He proposed adopting global practices where tax reforms are aligned with budget planning to enhance the correlation between revenues and expenditures.
On November 14, Prime Minister Nikol Pashinyan stated in parliament that the government is working on new tax legislation, criticizing the current laws for not serving the country's interests and potentially undermining state objectives. He emphasized the need for collective efforts to generate legitimate revenue, particularly regarding the turnover tax.